Customization: Ideal Varieties, Product Uniqueness and Price Competition
We study customization in the Hotelling model with two firms. In addition to providing ideal varieties, the perceived uniqueness of a customized product contributes independently to consumer utility. We show that only when consumer preferences for uniqueness are high customization occurs in equilibrium.
|Date of creation:||31 Jan 2009|
|Publication status:||published in Economics Bulletin 2009|
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- Haim Mendelson & Ali K. Parlaktürk, 2008. "Product-Line Competition: Customization vs. Proliferation," Management Science, INFORMS, vol. 54(12), pages 2039-2053, December.
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1435, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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"Customization with Vertically Differentiated Products,"
Journal of Economics & Management Strategy,
Wiley Blackwell, vol. 20(2), pages 475-515, 06.
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